Cadence Design Systems, Inc. $CDNS Stock Position Boosted by Sequoia Financial Advisors LLC

Key Points

• Sequoia Financial Advisors increased its Cadence Design Systems stake by 58.2% in the second quarter, bringing its holdings to 16,776 shares valued at approximately $6.3 million. Institutional investors collectively own 84.85% of CDNS.
• Analysts remain broadly positive, with 14 Buy ratings and three Holds. The stock has a “Moderate Buy” consensus rating and an average price target of $403.88, well above its reported $289.37 opening price.
• Cadence exceeded quarterly earnings expectations, reporting $2.11 EPS versus a $2.05 consensus and 24.2% year-over-year revenue growth to $1.58 billion. Meanwhile, insiders sold 5,530 shares worth about $1.9 million over the past 90 days, primarily through pre-arranged trading plans.

Sequoia Financial Advisors LLC boosted its position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 58.2% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 16,776 shares of the software maker's stock after purchasing an additional 6,169 shares during the period. Sequoia Financial Advisors LLC's holdings in Cadence Design Systems were worth $6,296,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Avalon Trust Co purchased a new position in Cadence Design Systems in the 2nd quarter worth about $30,000. Fiduciary Financial Advisors purchased a new stake in Cadence Design Systems during the second quarter valued at about $31,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Cadence Design Systems during the fourth quarter valued at about $28,000. Arlington Trust Co LLC boosted its holdings in shares of Cadence Design Systems by 154.3% in the second quarter. Arlington Trust Co LLC now owns 89 shares of the software maker's stock worth $33,000 after buying an additional 54 shares during the period. Finally, Imprint Wealth LLC acquired a new position in shares of Cadence Design Systems in the third quarter worth about $31,000. 84.85% of the stock is owned by institutional investors.

Analysts Set New Price Targets

CDNS has been the topic of several recent analyst reports. Morgan Stanley reissued an "overweight" rating and set a $400.00 target price on shares of Cadence Design Systems in a research note on Wednesday, July 29th. Piper Sandler raised their target price on Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 28th. FBN Securities assumed coverage on Cadence Design Systems in a report on Friday. They set an "outperform" rating and a $375.00 price target on the stock. Wells Fargo & Company upped their price target on Cadence Design Systems from $400.00 to $425.00 and gave the company an "overweight" rating in a research report on Tuesday, May 26th. Finally, Rosenblatt Securities increased their price objective on Cadence Design Systems from $410.00 to $420.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $403.88.

Cadence Design Systems Stock Performance

Shares of CDNS opened at $289.37 on Friday. The company has a market capitalization of $79.69 billion, a PE ratio of 57.53, a PEG ratio of 3.06 and a beta of 1.14. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74. The company's 50 day moving average price is $332.84 and its 200 day moving average price is $333.50. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. The company had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company's revenue was up 24.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.65 EPS. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. Research analysts expect that Cadence Design Systems, Inc. will post 6.4 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of Cadence Design Systems stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $320.88, for a total transaction of $401,100.00. Following the completion of the sale, the director owned 40,794 shares of the company's stock, valued at approximately $13,089,978.72. This trade represents a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the business's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total value of $94,920.00. Following the completion of the transaction, the vice president owned 31,720 shares in the company, valued at $10,753,080. This trade represents a 0.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 5,530 shares of company stock worth $1,924,660. Corporate insiders own 0.49% of the company's stock.

About Cadence Design Systems

Cadence Design Systems, Inc is a technology company that develops electronic design automation (EDA) software, hardware and semiconductor intellectual property (IP). Its products help engineers design, verify and analyze integrated circuits, printed circuit boards and complete electronic systems.

The company offers solutions spanning digital and custom IC design, functional verification, digital and analog simulation, emulation and prototyping, system analysis, and 3D computational fluid dynamics.

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